Is The Negative Analyst Sentiment On Freshworks Inc (FRSH) A Buying Opportunity?

Freshworks Inc. (NASDAQ:FRSH) is one of the 12 best mid cap AI stocks to buy according to hedge funds. On February 11, Cantor Fitzgerald reduced its price target on Freshworks Inc. (NASDAQ:FRSH) from $19 to $14 while reiterating an Outperform rating. The firm’s adjusted price target offers a further 91.78% upside from the current levels. According to the firm, the company posted better-than-expected Q4 results, exceeding consensus estimates for both earnings and revenue. In addition to solid fourth-quarter results, the company’s CY2026 revenue outlook was slightly above analysts’ expectations.

Although Freshworks Inc. (NASDAQ:FRSH) posted strong results, the firm said that the ongoing growth deceleration still requires attention. According to the analyst,  recent trends don’t match the management’s usually positive commentary. It has led to investor disappointment and confusion.

Freshworks Inc. (NASDAQ:FRSH) reported its fourth-quarter financial results on February 11. The company grew its Q4 revenue by 14% YoY, totaling at $222.7 million. Annual recurring revenue increased 18% year over year to $907 million. Free cash flow margin for the quarter was 25%, while Non-GAAP operating margin was recorded at 19%. Supported by one-time items, GAAP net income for Q4 stood at $191.4 million. Customer growth during the quarter remained strong. More than 1500 customers now generate over $100,000 in ARR.

Freshworks Inc. (NASDAQ:FRSH) is a software development company. The company offers software-as-a-service (SaaS) products across the Middle East, North America, Asia-Pacific, Europe, Africa, and worldwide. Its SaaS solutions consist of Employee Experience (EX) and Customer Experience (CX). The company offers a Freshworks platform.

While we acknowledge the potential of FRSH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.